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What is Shop and Establishment License?

One of the most important regulations to which most businesses in India are required to comply is the Shop and Establishment Act, which is enacted state wise. This Act is enacted to regulate the wage payment, working hours, leave, holidays and other working situations of people employed in the unorganized sector. The Shop and Establishment Act is regulated by the Department of Labor. shop and establishment license or registration can be done online / offline by using swarit advisors team. 

Shop and Establishment License is required for both Profit / Non-profit entity Includes following?

  • Societies registered under any other act.
  • Charitable Trusts
  • Educational Institutions
  • Any other establishment or premises in which any services of banking, insurance etc. is carried on.

What is Definition of Premises under Shop and Establishment Act?

The Shop and Establishment Act in India are enacted state wise. However as per the Act, Shop is defined as the place where goods are sold either in the form of retail or wholesale or where services are provided to the customer, also it includes office, a store room, a go down, warehouse.

Establishments under The Shop and Establishment Act means a shop or a commercial establishment, residential hotel, restaurant, theater or other places of amusement for public or entertainment.

There is a specific exclusion of factories under the Shop and Establishment Act as they are regulated by the Factories Act, 1948.

The Following Aspects covered under the Shop and Establishment Act?

1. Working Hours.

2. Breaks for rest and food.

3. Prohibition to employ child labor.

4. Employment of men and women.

5. Working Hours.

6. Weekly off.

7. Paid Leaves.

8. Public Holidays.

9. Leave policy.

10. Sanitation and cleanliness.

11. Accidental remedies.

12. Firefighting remedies.

13. Record Keeping.

14. Time and conditions for wage payment or calculation.

What is Procedure for applying for the Shop and Establishment License?

Shop and Establishment License can obtained by following steps -

  • Any Shop or establishment that commences its operations is required to apply to the Chief Inspector for Shop and Establishment Act License within the prescribed time.
  • The application for the same shall contain the details such as the name of the employer, name, and address of the employer, category of establishment, number of employees and other relevant details as required.
  • After due verification and review by the chief inspector, a Registration Certificate shall be issued to the occupier.
  • The Registration Certificate shall be displayed at the Shop or establishment for which the license is obtained and has to be renewed periodically
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